Solana (SOL) Returns Below $200 as Market Stays in Red

Solana (SOL), the fifth largest digital asset by market cap, has once again slipped below the crucial $200 mark as the broader cryptocurrency market remains in the red. The pullback comes amid a general market drop, with major cryptocurrencies struggling to maintain recent gains.

According to CoinMarketCap data, SOL is down more than 4.2% in the last 24 hours, trading at around $191 at the time of writing. This dip follows a recent rebound that saw Solana surpass $200 again, fueling hopes for future gains. However, selling pressure and marketwide losses have erased some of those gains.

Solana rose for four consecutive days after recovering from a low of $188 on Feb. 7. The rally peaked at highs of $209 on Feb. 10, when bulls faced resistance. 

Prices started dropping from here, with SOL on track to mark its second day of falls. Today’s drop follows a red-hot January CPI inflation report that stoked selling on the markets.

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Inflation rose faster than expected in January, giving another incentive to the Federal Reserve to keep interest rates unchanged.

CPI advanced by a seasonally adjusted 0.5% for the month, bringing the annual inflation rate to 3%, both more than anticipated. Core CPI rose by 0.4% and 3.3%, respectively, above expectations.

Following the CPI report, markets expect the Fed to remain on hold for a prolonged period, pushing the next rate cut into September.

$1.5 trillion investment asset manager arrives on Solana

Franklin Templeton, a global investment firm with over $1.5 trillion in assets, has expanded its tokenized money market fund, Franklin OnChain U.S. Government Money Fund (FOBXX), to the Solana blockchain.

With over $500 million issued on other chains as of Jan. 31, Franklin Templeton’s recent move would provide institutional-grade money market exposure to Solana, joining an expanding suite of real-world assets (RWAs) launched on the platform.

FOBXX, which debuted on the Stellar blockchain in 2021, is the first U.S.-registered mutual fund to employ blockchain for transaction processing and recordkeeping.